Roosiana, Artalia Indah and Bustaman, Yosman (2015) Majority Shareholder ; Large Shareholder, Family Ownership, Institution Ownership and its Impact on Firm Performance. Business and Management Studies Journal, 3 (1). pp. 16-27.

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Abstract

We investigate the impact of majority shareholder that categorizes as large shareholder, family ownership and institution ownership on the firm performance measured by accounting performance ROA and market performance namely Tobin Q. This research concentrate on Consumer Goods Sector Companies listed on the Indonesia Stock Exchange (IDX) covering from year 2011 to year 2014. We use unbalanced panel data analysis. After controlling with firm specific variables; such as size of company, age, leverage, growth and macro economic variables, we find that large shareholder without knowing who the owners are do not affect the firm performance. However, when the family and institution become dominance in controlling the company, market reacts negatively. It might occur because market perceives negative effect of disgorging cash by family and institutional that cause lower distribution profit for other minority shareholder in the market. Our finding provides the signal for company which majority of shareholder is family and institutions, they have to be alert that market judge negatively so that they probably need to provide more transparence report on flowing the cash flows of company. Additionally for the new investors who expect to have capital gain on the investment must take fully concern on this condition, because their value of investment could decrease and get loss if they invest in this type of companies

Item Type:	Article
Uncontrolled Keywords:	Large Shareholder; Family Ownership; Institution Ownership; Tobin Q; Firm Performance
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD62 Standardization. Simplification. Waste > HD62.25 Family-owned business enterprises
Divisions:	Faculty of Business Administration and Communication > Department of Accounting
Depositing User:	Maria Lamury
Date Deposited:	24 Sep 2020 10:14
Last Modified:	24 Sep 2020 10:14
URI:	http://repository.sgu.ac.id/id/eprint/1791

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